Internal Audit Compliance

August 1, 2014 Published by
Post Categories: Tax AccountingAdvice For You

Establishing internal audit compliance demonstrates to stakeholders how effectively the company is aligning with financial and governmental processes. An internal audit looks at the financial health of your company with consideration of operational and financial management. The auditor aims to uncover whether or not financial controls are promoting the sustainability of your enterprise.

What is Internal Audit Compliance?

  • Establishing internal audit compliance involves an objective party exposing accounting models or operational procedures that fail to comply with best practices
  • Once the ineffective models are exposed, the auditor reports on and demonstrates how the enterprise can better comply with financial and operational best practices
    • This compliance elevates operational and financial efficiencies, improving the profitability of the company

Why is Internal Audit Compliance necessary?

Every organization needs financial, operational and managerial controls

  • These processes may be put in place by leadership or the government
  • Internal audits reduce risk, promote profitability and ensure legal compliance
  • Over time, regulations can disintegrate or fail to meet enterprise objectives, exposing the organization to financial inefficiencies, unjustified losses and risk. Internal Audit Compliance helps avoid these problems.

What happens during an internal audit?

  • Objective testing for compliance with relevant laws, regulations and taxation guidelines
  • A comprehensive review of financial data and reports by a seasoned profit-centric professional
  • The creation of a tactical plan to better manage resources and increase the effectiveness of day-to-day operations and money management

What does Internal Audit Compliance mean for your company?

  • A better understanding of how money is being spent and how it can be spent more effectively
  • Better positioning for growth, transitions and to prevent crises
    • By mitigating loss and reducing risk, the audit helps your enterprise establish financial security that will stabilize the company in times of need
  • Effective prioritization of the components of the business that require changes to better comply with governance policies
    • Enabling your leadership team to get started on major issues right away and minimize negative effects on your bottom-line
  • Enhanced governance reduces the likelihood of a Canada Revenue Agency audit as the company learns to comply with legitimate financial management and reporting practices
  • Stakeholders feel assured that the company is operating and managing finances in a legal, effective and sound manner

Profitability is consistently and powerfully impacted by risk. By prioritizing internal audit compliance, your company takes an important step towards a more sustainable business model. An internal audit may expose redundant overhead expenditures and production tactics that are leaking money. Your accountant will help you implement accounting practices that will minimize risk and promote profitability. An objective audit, based on facts and figures, will make this implementation easier as your team will understand exactly why action is being taken.

Get an objective internal audit from an independent agency who understand the comprehensive needs of your entrepreneurial enterprise. Contact Hogg, Shain & Scheck to learn how your company can better comply with financial management and operational best practices.